TSOT- Brief Structure of a Digital Currency Portfolio

Preparing for the Next Turn!

With Grayscale Investment Trust Fund recent February launch of its 'Diversified Digital Large Cap Fund' (DLCF), accredited investors would be able to gain access to get a deeper exposure to its weighted components in a more professional manner of investment criteria.

DIGITAL ASSET HOLDING Price / Share as of June 22, 2018 is at
$5.83 Net Day change of -6.87% Source Grayscale 

Here are the components market cap weighted percentage distribution in the fund where their Rebalancing schedule are on a Quarterly basis. This is based as of May 31, 2018

#BITCOIN - BTC - 55.2%  #ETHER   - ETH - 24.2% 

#RIPPLE  - XRP - 10.4%   #BITCASH - BCH -  7.4%

#LITECOIN- LTC -  2.9%

These components and their respective weightings would be quite useful in structuring our exposure to each or a selected group of Digital asset class both in CASH & FUTURES market. A strategic combination of asset class would be determined by monitoring 'Price Action' on the Bitcoin market as it carries a bigger weight / percentage in the basket fund of digital currency. However, the initial structure would concentrate more towards the DLCF and pre-determined individual funds including our 1st GBTC based from our reference information below. 

The approach is similar to the overall components of the original USD Index (DXY), with relative comparison to JP Morgan Asian USD Index (ADXY) and Bloomberg USD Index (BBDXY). This may seem to be a bit complex for others not accustomed to the strategies, as it involves a certain degree of process which MegaTrade101 has timelessly applied with Spot FX, Futures, Options and ETFs markets, which have been quite effective so far since then by using CIPHER3 Analysis Others may view the complexity of the process, but this is where it all started from and eventually turned into our core strength in trading.

With the recent 2017 launch of Bitcoin Futures by both the CBOE and CME, we are now gearing up to speed on combining these methods in a pre-selected venue. Now that the top digital currency assets are tradeable in a variety of funds it would be time to re-apply its viability. Their respective price and percentage differentials have always been our key asset in determining their imbalances similar to the foreign exchange market. 

For now, we would simply share this brief information, as we structure the portfolio based on this premise to start with. As we all know that the Digital Currency market have been experiencing a remarkable decline and the current pressures are yet to be ironed out in the market. 

Reference Information:

BTCUSD Alternative Trade Strategy

Digital Currency Finds Relative VALUE as an Alternative Investment

After the Fact: Volumes Surge Pushes Bitcoin above 8000 

Managing Record lows from Bitcoin Markets

The Crypto space have been experiencing a lot of backlash of negative events with BITCOIN prices leading the decline alongside the rest of the pack. With its recent registered low at 5921 - Coinbase, comparing prices with BitFinex low at 5910. And at the rate the market is still going, the probability of revisiting the 5511 & 5400 previous low respectively would likely occur, but not without a good fight from each successive session. 

Price volatility increases on the decline from the past three relief recovery after nearly retesting 10000 last May 05, 2018. Failure to breach the 10k mark have led the decline with consistent lower volume and interest as the surrounding negative news have been more influential up until now. 

Meanwhile, after experiencing the overall bearish market performance, traditional & Classic Bitcoin investors who considered hedging in the futures market to cover further risk of loss are in a better position to weather the storm of adverse price swing. And be able to buy enough time to carefully observe market price behavior. 

Being a wise, tactical investor can only best serve their investment interest and  do encourage to make use of what other exchanges has to offer and maximize market potential in both directions. In addition, initial investors who have accepted tokens / other related coins backed by a fractional value from the 5 major digital classes especially from ETHUSD, have to accept the market's current price sentiments for now.

As the tokens offered have been applied as frontline asset class to raise funds as an ICO for their individual companies niche blockchain technology applications in various sectors and industry may have to wait a bit longer to see their investments growth & reward. Although, everyone have their respective reasons for investing and trading.

With that said, price swings in both directions coupled with increase volatility would continue in a downward spiral until such time an encouraging catalyst would emerge in the market that could affect current market sentiments.  The Bitcoin price charts formation has some similarities with UAE's Burj Khalifa structure, so to speak! 


#BITCOIN Classic Overlay #BTCN2018 FUTURES
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